Innovation and Entrepreneurship Australia Essay 2022

Running Head: INNOVATION AND ENTREPRENEURSHIP 0
ENTREPRENEURSHI
P & INNOVATION
Student details:

INNOVATION AND ENTREPRENEURSHIP 1
The following essay is based on entrepreneurship and innovation. The essay throws light
upon concept of entrepreneurship. It expounds the steps, which are taken by Australian
government in order to promote the concept and idea of entrepreneurship within nation. Key
term identified in the essay is entrepreneurship and innovation and the whole study revolves
around these two terms. It explains the positive and negative impacts of entrepreneurship on the
society in both individual and extensive context. Information added to the paper is according to
the strategies of the industries existing in Australia and The Australian (business newspaper) of
Australia. Entrepreneurship refers to the ability/activity to set up a business or an industry by
taking financial risks in the hopefulness of earning profits in near future. The entrepreneurs are
optimistic; they are always ready for facing failures and challenges. It is process of designing,
administrating and initiating a new business to generate profits and employment in the economy.
The government of Australia has started a flagship program for the newly emerging
entrepreneurs in the country. This initiative of government provides practical support to the
businesspersons and financial support to build business opportunities in market (Department
of Industry, Innovation and Science, 2019). It is observed that economists hold mixed
opinion regarding the influences/impacts of entrepreneurship (Industry , 2019).
In the era of developing economies, entrepreneurship plays an eminent role. It is
observed that entrepreneurship has given birth to modernization, which has led to improvisation
in standard of living and added wealth to the society. The concept has generated lot of job
opportunities in the society, which has reduced the unemployment ratio and generated human
capital for overall development of the economy. The emergence of new talents in the economy
has boosted the conditions of Australian economy in comparison of other nations (Drucker,
2014).
Entrepreneurship gives rise to two major negative impacts on the society. Firstly, it leads
to plundering of resources, which can have catastrophic effect on the atmosphere.
Entrepreneurship requires certain amount of knowledge related to business. The lack of
knowledge and information regarding utilization of resources leads to degradation and misuse of
natural and capital resources. The improper utilization of resources and deficiency of know
how’s fronts the entrepreneur failure. These failures leave a negative impact on an economy as
whole (Kirzner, 2015).

INNOVATION AND ENTREPRENEURSHIP 2
Another major negative influence is a consequence of the failure in entrepreneurship. The
reasons behind facing a failure in entrepreneurship are lack of vision; passion about holding a
specific business is not enough for making a business successful. It is essential to understand the
whole picture at next level with practicality; success and failure are both parts of
entrepreneurship. Therefore, entrepreneurs should be ready for both positive and negative results.
Limited vision, lack of proper planning, lack of capital assets and the idea of expanding the
business early are the reasons behind failure in business. The failure or loss in business leads to
depression and mental illness. Stress and pressure of reestablishing and restoring the business
surrounds the entrepreneurs with tension and strain. Repayment of the capital borrowed from
market engenders melancholy and anxiety. Hence, all these problems leave a severe imprint over
the mental and physical health of the entrepreneurs (Cho & Honorati, 2013).
According to a recent data collected, around 90% of the entrepreneur ventures fail which
falters the conditions of the economy. Thus, the entrepreneurship leaves behind some negative
impacts on the economy and on the personal life of an individual as well (Forbes, 2019).
Every concept, model or theory has both positive and negative impacts. Similarly, the
concept of entrepreneurship left positive impacts on the society. Economies like Australian
economy are moving forward to the concept of globalization, which offers the idea of
liberalization and entrepreneurs to the businesspersons. The concept of entrepreneurship or
starting up one’s own business has spurred the growth of economy. It has led to innovation,
which has developed the standard of living of the people. Introduction of new business firms in
market has generated job opportunities for people. Some of the people who are unable to find a
suitable job for themselves eventually end by setting up their own business. By this, they not
only get a job of their choice rather they are also able to create job opportunities either for others
who are jobless or in search of a new job (Hechavarría, 2016).
The building of new startups in the economy provides employment and adds to the
national income of the country. The aggregate production of the economy increases with an
increase in total number of producers. Hence, the firms improve their work operations to produce
as much as possible. The entrepreneurs find efficient ways to produce with cost efficient
techniques; they look for development in the technology used for production. Thus, it can be